EM5210 - Penalties: formal assessments and determinations: amounts
All NPPS penalty cases, and most AO Report Form submissions requesting authorisation of a formal penalty determination or assessment see EM5205, will be in respect of a tax related penalty EM5211.
For penalty under FA07 and FA08
In NPPS you should
- identify the behaviour that gave rise to each inaccuracy or offence
- identify the maximum and minimum statutory penalty for each inaccuracy or offence
- identify the potential lost revenue for each inaccuracy or offence
- show what reductions for disclosure you are proposing and on what grounds. Remember that the taxpayer has the right to follow the statutory procedure and the reduction for quality of disclosure (helping) should not be reduced for that - so long as there is no significant delay in communicating their view and in progressing the enquiry by the formal route
- show the net percentage penalty loading for each inaccuracy or offence
- show the proposed net penalty amount in figures.
For other tax related penalties (for example TMA70/S95)
In the AO Report Form you should
- identify the maximum statutory penalty for each year - the ‘tax difference’ EM4801. Where NIC is included, you should show this separately
- show what abatements you are proposing for Disclosure, Co-operation and Seriousness, and on what grounds. As regards Co-operation, remember that the taxpayer has the right to follow the statutory procedure and the abatement should not be reduced for that - so long as there is no significant delay in communicating their view and in progressing the enquiry by the formal route
- show the net percentage penalty loading
- show the proposed net penalty amount in figures, the “appropriate” amount TMA70/S100(1).
For non tax related penalty - penalties imposed in an amount ‘not exceeding £x’
In the AO Report Form you should
- identify the maximum penalty
- indicate the ‘appropriate’ level of penalty in your opinion, following any guidance available, (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- notwithstanding that the penalty is in an amount not exceeding a specified sum, if there has been a loss of tax associated with the offence, give details of the amount lost.